LAS VEGAS — Despite General Motors' slumping U.S. retail sales, the company insists it is continuing to reduce its sales to rental companies.
"We are not ramping up again," said Brian McVeigh, GM's general manager of fleet and commercial operations. GM held its annual meeting with its business customers, including rental companies, here this month.
Rental and other fleet sales generally are less profitable than retail sales because fleet customers get volume discounts. When large numbers of retired rental vehicles return to the used-vehicle market, values of both new and used vehicles can suffer.
Still, the Detroit 3 long have relied on fleet sales to maintain production, especially of slow-selling vehicles. McVeigh said those days are over at GM.